ASSESSMENTOFFINANCIALMANAGEMENTPRACTICESOFNGOSIN GURAGHEZONE-CASEOF WORLDVISIONANDCOMPASSION : COMPARATIVE

Abstract

The study examined assessment of financial management practices in NGO. The purposes of assessment are to assess the financial management practice of NGO in Gurage zone. A convenient sampling technique is used to select the NGO. This research therefore advances the frontiers of knowledge by comparatively analyzing the financial management practice of two NGO; world vision and compassion organization. Descriptive method of assessment was conducted and data were collected by applying purposive sampling . Questionnaires used to collect data for the study. The major findings were: lack of budget approval by board, common cost allocation system, records keeping for gifts in kind items, cash forecast preparation, finance staff participation in budget preparation and review, and concentration on limited projects and sources of fund, weakness in standardized financial statement preparation and delay in reporting among others. Finally, the researcher recommended: as means to discharge responsibility & accountability and to show service giving efforts, operational efficiency and effectiveness to contribution to the development endeavor of the country, they should establish a well-organized financial management systems: budget management, accounts record keeping and reporting. The study also recommended that is advisable that the owner s of NGO avail themselves with the various training programs: better to engaged in financial planning, analysis, and control in order to compare their financial plan with performance: and also maintain professional accountants so as keep complete accounting records